DeepSeek Disruption: Trump Tariffs Propel Gold Prices Amid Market Turmoil
The Impact of Trump Tariffs on Gold Prices
Gold prices surged to a record high on Monday, driven by increasing demand for safe-haven assets influenced by U.S. President Donald Trump’s tariff policies and persistent inflation worries. The price of international spot gold rose 0.57 percent to US$2,813.34 per ounce, having peaked earlier at US$2,830.49 in the session.
Global Reactions and Market Dynamics
- In China, gold product prices climbed significantly, with major players like Chow Tai Fook and Chow Sang Sang reporting prices exceeding 850 yuan per gram.
- Analysts from Citic Securities noted that trade disputes have amplified market risk aversion.
- China has responded with tariffs on U.S. goods, exacerbating market tensions.
The Role of DeepSeek in Market Volatility
Investor anxiety was further intensified by the stock market turmoil caused by the Chinese AI start-up DeepSeek, leading to a significant sell-off in U.S. technology stocks. The Nasdaq Composite Index saw a retreat of more than 3 percent, exacerbated by a 17 percent drop in Nvidia shares.
Conclusion: A Shift Towards Safe-Haven Assets
As geopolitical tensions rise and economic uncertainties persist, trends suggest that demand for gold will continue to elevate, supported by global central banks accumulating gold reserves as a hedge against the U.S. dollar’s declining influence.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.